This publication is available at https://www.gov.uk/government/publications/roadmap-for-digital-and-data-2022-to-2025/transforming-for-a-digital-future-2022-to-2025-roadmap-for-digital-and-data. Significant financial investment has already been made in previous years, and in the 2021 Spending Review we committed to investing an additional 8 billion in digital, data and technology transformation by 2025. Description: We are market testing for an operator for the Belmont Cinema and media centre. Agree to co-develop and adopt a single data ownership model for critical data assets. electronics), and in countries that have traditionally been the engines of global supply chains.04 These shifts are likely to have several implications for procurement leaders: altering the supplier base as some suppliers adopt new technologies while others are left behind, changing the landscape of common labor-related issues in supply chains, creating new challenges related to workforce displacement, and facilitating access to a huge volume of real-time supply chain information that is produced and validated by many supply chain actors. One global electronics manufacturer conducted a detailed stress test of its supply chain, finding that around a quarter of its spend was at high riskconcentrated in three critical component categories. They are also enabling the future of procurement with: How do you capitalize on data to drive work prioritization and deliver superior procurement experiences? Tarandeep Singh Ahuja is a partner in McKinseys Melbourne office; Yen Ngai and Sukrut Kharia are associate partners in the Sydney office, where Harkanwal Singh Sidhu is a consultant. Digital impacts everything we do. Step changes in our approach to building and buying technology can also reduce waste, allow us to operate more sustainably and enable development of sophisticated models that help predict and guide our responses to climate change. Government is committed to addressing these problems. We have significant challenges to overcome. BSR is a sustainable business network and consultancy focused on creating a world in which all people can thrive on a healthy planet. In three years, Aon's procurement team drove nearly $300 million in savings . BSRs Sustainable Futures Lab helps businesses to spot emerging issues early, explore different possible futures, and develop more resilient and sustainable strategies. The key to success is to develop a blueprint for how your procurement team can turn these disruptors into opportunities to grow and gain competitive advantage. For more detail about the structure of the KPMG global organisation please visit https://kpmg.com/governance. To help us improve GOV.UK, wed like to know more about your visit today. Niul Burton wrote a great article in Industry Week titled "Procurement 2025: 10 Challenges that Will Transform Global Sourcing". See also the Construction Industry: Supply Chain Analysis that looks at the structure of the UK construction supply chain and identifies areas for cost savings. This button displays the currently selected search type. Risk: By 2025, procurement risk management will undergo a major shift, moving away from emphasizing compliance to adopting a more holistic strategy that includes total risk exposure, risk mitigation investments and risk transfer pricing. The important work that SAP Ariba's customers are doing now will result in the foundational strategies, structures and . Transform and create a resilient supply chain taking advantage of global disruption, market changes, digital technologies and cloud advances. The future of procurement Focus on innovation, relationships, decentralization and agility - to stay in front of change. In 2025, the role of the CPO may include even more focus on providing this kind of strategic foresight to the business, understanding forces of change and uncertainty, and translating weak signals about supply chains into valuable business intelligence. Simplifying supply chains creates business efficiencies and can help to reduce uncertainty and risk. News stories, speeches, letters and notices, Reports, analysis and official statistics, Data, Freedom of Information releases and corporate reports. How do you capitalise on data to drive work prioritisation and deliver superior procurement experiences? Digital transformation of government will enable teams to work in a more streamlined and efficient way, reducing duplicated work and automating manual processes, in order to support delivery of the plans recently announced by the Prime Minister to return Civil Service headcount to 2016 levels. Trading and procurement codes - guidance on requirements and principles 1 . Partnerships of this type are likely to continue as outperformers look to create competitive advantages by partnering with suppliers for new products or services. To explore how the future of procurement will evolve, we asked these executives 1) what they believed procurement would look like in the year 2025, 2) how this evolution will occur, and 3) the critical success factors that are required to achieve this CDDO will support departmentally led DDaT pay reform as appropriate. All new services shall comply with the common approach to Secure By Design. 8. As we reflect on the past and hope for the future, we walk together on a . Dont include personal or financial information like your National Insurance number or credit card details. All departments agree to promote a buy once, use many times approach to technology, including by making use of a common code, pattern and architecture repository for government. The Future of Procurement. The present-focused, future-ready R&D organization, Taking supplier collaboration to the next level, Unlocking enterprise efficiencies through zero-based design, Visit our Product Development & Procurement page, accelerated the reimagining of the workplace. To embrace digitization to drive, enable and effectively support the business. 7. Focus on innovation, relationships, decentralization and agility to stay in front of change. We will create a more joined-up and efficient government that uses common building blocks to deliver services quickly, cheaply and securely. They are moving into the future by becoming: Third party centric Drive supplier performance and take partner relationships to a new level. Others highlight a need to enhance their supplier development platforms in order to achieve public-facing sustainability goals, such as science-based climate targets. Tactical procurement alone will simply not be sufficient for any business that wishes to keep up; rather procurement must have to play the role of strategic and collaborative contributor for the success of the organization. This primer provides a new way of thinking about the future of supply chainsbringing together the top procurement priorities of leading global businesses and the key forces of change reshaping the very business models that have given rise to global supply chainsto enable supply chain leaders to envision and manage future-fit supply chains. Procurement is changing very fast, gaining strategic importance and driving not only cost savings, but also innovation and business value to the organization. We also found that companies with top-performing procurement functions saw valuations return to pre-GFC levels an average of three years faster, and were able to lower costs of goods sold (COGS) as a percentage of revenue, thus improving EBITDA by 3 percentage points more than bottom performers. PDF, 2.16 MB, 78 pages. Its no longer business as usual for procurement. Contact, How New Regulations Are a Game-Changer in Just and Sustainable Business, Canadas Modern Slavery Legislation: Key Recommendations for Business, Embedding Human Rights from Boots to the Boardroom, Nine Ways to Activate Your Board on Climate, Why Every Business Needs to Think about Responsible AI. In his recent Supply Chain Digital Magazine article, Future-proof your supply chain to 2025 and beyond , Brent posits seven ways shippers can make decisions now to improve operational efficiency in the next couple of years. This will significantly help business to . If at any point of time you decide to withdraw your consent, you may unsubscribe by emailing your request to us atprivacy@gep.com. We have come a long way in the past decade. When renewing contracts or commissioning new schemes, consider new methods of procurement, such as the use of collaborative frameworks and contractors which are able to provide a long-term partnership delivering efficiencies through innovation through the whole life of the contract. Forced social distancing accelerated the reimagining of the workplaceand in particular the switch to remote workfaster than almost anyone could have predicted. For example, businesses sourcing from regions impacted by mass migration can re-direct resources to engage with industry peers and cross-border actors, including government, labor unions, and employers, to reinforce legal frameworks and insist on better enforcement of labor laws. Legal requirements and stakeholder expectations for risk screening and due diligence are increasing, and procurement leaders will need to leverage more sophisticated tools, triangulate information and data from more sources, and scan for risks in deeper parts of the supply chain than ever before. In the years ahead, the business models that gave rise to global supply chains may be unwound by direct challenges to, or even simply uncertainty about, the durability of global trade agreements and norms. Companies can build on the lessons learned in well-worn sourcing locations such as China to develop smart sourcing models in emerging hubs such as sub-Saharan Africa.16 Supply chain leaders will have the chance to embed social and environmental responsibility into the design of these regional sourcing hubs and to leapfrog supplier monitoring activities that have not delivered improvements in labor conditions or environmental resilience. Developing new skills will not be optional. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. Spending dropped, demand wavered, shopping malls went quite, and the corporate landscape shifted. In Australia, in the immediate aftermath of the crisis, supermarkets in need of extra personnel to handle a sudden surge in sales contracted with thousands of airline workers who had been sidelined when airlines downsized. The government set out its approach to building a cyber resilient public sector in the Government Cyber Security Strategy; this roadmap complements it by explaining how we will bring in the cyber skills we need and build systems and services that are secure by design. 3. with 25 Chief Procurement Officers from companies that represent a spectrum of maturity level. Departments are often able to deliver high volume digital services to a good standard, manage complex technology estates well, and innovate and respond rapidly as citizens needs change.